Lenders 'confident of avoiding recession'

Mortgage lenders in the UK are generally confident of avoiding a recession, according to the Intermediary Mortgages Lenders Association (IMLA).

Research by the body found that while 44 per cent of respondents believe that two quarters of negative growth may be ahead, but none of them expected a "full-blown" recession in the future.

Several intermediaries also stated that the mortgage market is getting better, despite over a fifth saying conditions would remain unchanged.

Peter Williams, IMLA''s executive director, said: "Times are tough in the mortgage market, but key participants in industry remain confident that we can steer clear of an all-out recession.

"There are also pockets of greater optimism - surprisingly enough, in the south-east, for example."

The IMLA''s research has come after the organisation also welcomed the Bank of England''s move to support the mortgage market.

Commenting on the move, Mr Wiliams said that it must be regarded as a "positive step in terms of kick-starting the mortgage industry".

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